USD/JPY Technical Analysis

• USD/JPY is in retracement
• Possible bounce at the 88.6 zone
• Continuation of downtrend below Q L4
• Trend still bullish

DAILY CHART USD/JPY

1. Double bottom
2. Swing high
3. Bounce zone
4. Target
5. Breakout low
6. Target 2

The USD/JPY has formed a bullish inside bar, or multiple inside bars. The scenario is looking bullish as long as the price holds above 113.00. We could still see a move up but Yen is getting stronger and that is the problem for the USD bullishness. At this point watch for 88.6 rejection around 113.00. If it happens then the next target to look for is 114.36. 116.50 is the final target. However, at the break of 112.50 we could see a move lower to 110.21. Watch out for above mentioned levels and zones.